Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
kdryan64

0 Contributions
0 People Helped
What happens if I apply for a card and don't want it?
Ok, so I recently posted about getting a better credit score and have been tinkering with the idea of getting an actual (not secured) card. I have applied three times and whatever the results here, I am NOT doing anything else because I don't want to fall into a trap and I don't want to hurt myself by applying at too many places.

According to Credit Karma my TU score is 689 and EQ is 692. Both are better than my finance company which put me at 661 about a month ago (ZERO late payments EVER!).

I applied for a Paypal line two weeks ago and got $1000

I applied at my bank a week ago and got a letter saying they would let me know within a month.

I just now applied for a Chase Freedom card recommended by Credit Karma and was instantly approved for $1000 at 24.5 apr to which I promptly thought '**** that!'

The problem is they didn't state the apr before you fill out the app and honestly, I would rather have no card than a bad card. I am NOT paying 24% on anything! So what happens if I call them up and say 'Thanks, but no...' to the card and close it?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-4 of 4Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
14 Contributions
233 People Helped

Time to consider stop applying

First my guidance would be ok - you have applied for and know you have received 2 of 3 - if the third comes to pass great - but now stop.   Each one of them probably did a credit check - which will run one of two ways- each will ding your credit for 10 points each - or all three combined will ding your credit by 10 points period.  There is a big difference and while this 10 or 30 point ding is a temporary one - and has a small affect on the long run it still has a short term effect.

Next - Consider once you finalize the last one - FREEZE your credit - this will prevent fraud (people opening credit in your name) - and well also keep you from impulse opening accounts.

Next - Doesn't matter what the % interest is if you pay in full the balance - before the due date each month.   By paying the card(s) each month in full - means you will have an effective interest rate of 0%. 

Finally - the key now is to use the card and pay it off each month to get a track record -REPORTING schedule from the cards - this takes time and will if you charge a SMALL amount - the day after the card closes - then let it report to T.U. Equifax and Experian - but pay off the card each month on time - your score will go up rather quickly.

The key is - to use credit wisely - by never paying interest - which is easy - just don't go nuts with the cards - just because it says you have 1,000 limit - is NOT the same as saying you have 1,000 to spend -   Use the card to increase your score - but never pay interest !

Take this from someone who used credit - against the card - by purchasing items after the close date - which gives 6 weeks to pay off the purchase - gets reported as a balance - but yet I pay NO INTEREST - end game - I have a 720 credit score by doing this.

FREEZE YOUR CREDIT !  Only real way to stop fraud.

Top Contributor
140 Contributions
96 People Helped

Interest only matters if you hold a balance, and if you hold a small balance than 24% really isn't hurting you.

To me, it seems like you're new to credit or have a 'thin' profile. I would look at the paypal credit and chase card as stepping stones. If you manage them right, develop some history, and continue with a great payment history than you'll soon see better offers coming to you. Keep in mind you can also ask Chase for an apr reduction down the line.

Good credit comes slowly...

Top Contributor
947 Contributions
163 People Helped

Credit card companies can only give you a "range" of interest until the actual hard pull. The items in your hard inquiry would determine their final offer.    If you accept the Chase card and work to improve your credit score you can ask them for a reduction in the interest rate.    If you reject the card entirely, it will only appear as a hard inquiry to your report if you reject their offer and do not activate the card upon arrival.  If you activate the card, the account is valid and even if you close it, it will remain on your report for 7 years.

Top Contributor
8147 Contributions
4030 People Helped

Helpful to 0 out of 2 people

I strongly advise that you take the time to read the articles on this site so that you can really understand how credit works and how to build a good credit score.  As long as you do not carry over a balance on a card, the interest rate is not a problem.  The information on this site will help you to become 'credit smart'.  I learned more here than in my college business classes. 

Results 1-4 of 4Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.